Welspun One Logistics Parks has raised Rs 1000 cr within 4 months of launching its second warehousing focussed fund. In order to raise an additional Rs 1000 crore, the company recently announced the launch of its green shoe option. After the green shoe option is completed, the potential corpus might exceed Rs 2000 crore, making it one of the largest in the local real estate alternatives market, according to the company’s statement.
The investment outlay will cost more than Rs 8000 crore in total and will increase Welspun One’s AUM (Assets under management) to $1 billion. Welspun One Logistics Parks’ MD expressed their sincere gratitude to their investors for their everlasting belief in them, which propelled their organization’s successful second fund-raise. The company claims that the warehouse industry is still expanding rapidly, with record-high demand of 51.3 million square feet in FY 23 suggesting a CAGR of 24% from FY17 to FY23.
To raise an additional Rs 1000 crore, the company recently announced the launch of its green shoe option
with a well-developed pipeline of land parcels in important micro markets for storage, like the MMR (Mumbai Metropolitan Region). Chennai, Lucknow, and Bangalore are already operational, and fund-2 is in a good position to expand its current portfolio by 10–12 mn sq ft through new projects. Over the next 4-5 years, this strategy may result in an overall portfolio of 16–18 mn sq ft spanning first- and last-mile facilities in Tier 1 and 2 cities.
The company claims that the warehouse industry is still expanding rapidly
Welspun One Logistics Parks, or WOLP, said that it created this possibility through the financialization of real estate by issuing India’s first AIF of Rs 500 crore in 2021. WOLP was the first to recognise the untapped potential for local investors. According to the company, the fund committed its entire corpus across six assets totalling over 6.5 million in only about 1.5 years from its first closing. Furthermore, with 50% of the initial fund’s portfolio being leased and delivered, the portfolio has also had great traction on the ground.